The Group’s Power and Machinery segment continues to be the main contributor reporting a 27.7% or RM14.2 million growth in revenue from RM51.4 million in the corresponding quarter to RM65.6 million in its 1st quarter FY2013. The better performance was mainly attributable to the higher sales in exchange engines, gas turbine parts and services and deliveries of valves and flow regulators.
The Oilfield Services segment experienced a reduction in revenue by 37.4% or RM10.5 million to RM17.6 million (FY2012: RM28.1 million) in the current quarter largely due to lower wireline jobs and its related products. In addition, there was a one-off sale of critical spares under the wellhead maintenance contract of RM3.9 million in the corresponding quarter.
The revenue contribution from the Maintenance, Repair and Overhaul segment is consistent with the corresponding quarter at RM3.3 million and included contribution of RM2.4 million from Deleum Primera Sdn Bhd, a subsidiary acquired in the fourth quarter of 2012. Revenue contribution from Deleum Rotary Services Sdn Bhd declined by RM2.4 million due to lower activities during the quarter.
The Group, however, recorded a 27% or RM4.1 million decline in profit before tax of RM11.1 million for 1st quarter 2013 compared to RM15.3 million in the corresponding quarter. The reduction for the current quarter was mainly attributable to reduction of retrofit projects and deferment of oil and gas projects.
Deleum Group Managing Director, Encik Nan Yusri, said: “The first quarter saw a lower level of service activities in tandem with lower orders secured as well as deferment of projects by oil and gas operators in Malaysia. We anticipate that the level of activities are expected to increase in the forthcoming quarters.”
Encik Nan Yusri added: “The outlook for Malaysia’s oil and gas industry is expected to improve with Production Sharing Contractors (PSCs) stepping up efforts to increase the recovery rate of producing fields as well as the commencement of development of new fields. These activities are expected to spur business opportunities and Deleum is poised to enhance its competitiveness to seize these upcoming opportunities.”